How to cut the Federal Budget without cutting the Pension

After a spate of stories about whether the pension could be targeted to find savings for the federal budget, Federal Age Discrimination Commissioner Susan Ryan had a radical suggestion.

How about reducing the cost of the pension by keeping older people in the workforce, if they’d prefer to work longer?

So we asked Ms Ryan for 10 practical ways we can cut the cost of pensions by helping older people stay in the workforce. Here is her advice for employers, jobseekers and policy-makers:

1. When hiring new staff, ensure recruiters understand you are in the market for experienced workers, not just young workers.
2. Introduce practical measures to extend the working lives of your older employees who want to remain in the workforce. For example, offer retraining or flexible working conditions.
3. Consider bringing in an independent financial advisor to discuss money matters with staff. “A lot of really intelligent people don’t have a clear idea about how much money they’ll need in superannuation,” Ryan says.
4. Don’t fall into the trap of believing stereotypes about older workers, especially if you happen to be one. If you want – or need – to stay in the workforce, keep putting your hand up for promotions and training courses.
5. Mentor younger colleagues. Share your knowledge of your company’s corporate history through a formal mentoring program.
6. Be adventurous. Look for opportunities in different fields, especially if your industry is being downsized. “The whole aged care sector is crying out for skilled workers at all levels,” Ryan says.
7. Look after your health. If you have problems that can be managed through exercise and diet, be proactive.
8. Stay abreast of current recruitment practices, including ensuring your CV is in the proper format. Job Services Australia offers free advice.
9. Ryan applauds moves by the federal government to introduce training allowances for companies with older workers, but says these measures must be more widely publicised.
10. Governments are also huge employers.  Ryan says all levels of government could be doing more to retain older workers by following the advice given to private-sector employers.

Are you not working as much as you’d like to be? What are your experiences of age discrimination at work? What else would you suggest to keep FiftyUps in the workforce?

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